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26 U.S.C. § 6226 — Alternative to payment of imputed underpayment by partnership
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** If the partnership—
(1) not later than 45 days after the date of the notice of final partnership adjustment, elects the application of this section with respect to an imputed underpayment, and
(2) at such time and in such manner as the Secretary may provide, furnishes to each partner of the partnership for the reviewed year and to the Secretary a statement of the partner’s share of any adjustment to a partnership-related item (as determined in the notice of final partnership adjustment),
section 6225 shall not apply with respect to such underpayment (and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership) and each such partner shall take such adjustment into account as provided in subsection (b). The election under paragraph (1) shall be made in such manner as the Secretary may provide and, once made, shall be revocable only with the consent of the Secretary.
**(b) Adjustments taken into account by partner**
(1) **Tax imposed in year of statement** — Except as provided in paragraph (4), each partner’s tax imposed by chapter 1 for the taxable year which includes the date the statement was furnished under subsection (a) shall be adjusted by the aggregate of the correction amounts determined under paragraph (2) for the taxable years referred to therein.
(2) **Correction amounts** — The correction amounts determined under this paragraph are—
(A) in the case of the taxable year of the partner which includes the end of the reviewed year, the amount by which the tax imposed under chapter 1 would increase or decrease if the partner’s share of the adjustments described in subsection (a) were taken into account for such taxable year, and
(B) in the case of any taxable
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Source file: Laws/federal/codes/united-states-code/title-26/section-6226-alternative-to-payment-of-imputed-underpayment-by-partnership--ff8ac0897b.md
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Source location: Title 26, Chapter 63, § 6226; chapter-063-assessment.md
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**(a) In general** If the partnership—
(1) not later than 45 days after the date of the notice of final partnership adjustment, elects the application of this section with respect to an imputed underpayment, and
(2) at such time and in such manner as the Secretary may provide, furnishes to each partner of the partnership for the reviewed year and to the Secretary a statement of the partner’s share of any adjustment to a partnership-related item (as determined in the notice of final partnership adjustment),
section 6225 shall not apply with respect to such underpayment (and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership) and each such partner shall take such adjustment into account as provided in subsection (b). The election under paragraph (1) shall be made in such manner as the Secretary may provide and, once made, shall be revocable only with the consent of the Secretary.
**(b) Adjustments taken into account by partner**
(1) **Tax imposed in year of statement** — Except as provided in paragraph (4), each partner’s tax imposed by chapter 1 for the taxable year which includes the date the statement was furnished under subsection (a) shall be adjusted by the aggregate of the correction amounts determined under paragraph (2) for the taxable years referred to therein.
(2) **Correction amounts** — The correction amounts determined under this paragraph are—
(A) in the case of the taxable year of the partner which includes the end of the reviewed year, the amount by which the tax imposed under chapter 1 would increase or decrease if the partner’s share of the adjustments described in subsection (a) were taken into account for such taxable year, and
(B) in the case of any taxable year after the taxable year referred to in subparagraph (A) and before the taxable year referred to in paragraph (1), the amount by which the tax imposed under chapter 1 would increase or decrease by reason of the adjustment to tax attributes under paragraph (3).
(3) **Adjustment of tax attributes** — Any tax attribute which would have been affected if the adjustments described in subsection (a) were taken into account for the taxable year referred to in paragraph (2)(A) shall—
(A) in the case of any taxable year referred to in paragraph (2)(B), be appropriately adjusted for purposes of applying such paragraph, and
(B) in the case of any subsequent taxable year, be appropriately adjusted.
(4) **Treatment of partnerships and S corporations in tiered structures**
(A) *In general* — If a partner which receives a statement under subsection (a)(2) is a partnership or an S corporation, such partner shall, with respect to the partner’s share of the adjustment—
(i) file with the Secretary a partnership adjustment tracking report which includes such information as the Secretary may require, and
(ii)
(I) furnish statements under rules similar to the rules of subsection (a)(2), or
(II) if no such statements are furnished, compute and pay an imputed underpayment under rules similar to the rules of section 6225 (other than paragraphs (2), (7), and (9) of subsection (c) thereof).
(B) *Due date* — For purposes of subparagraph (A), with respect to a partner’s share of the adjustment, the partnership adjustment tracking report shall be filed, and the imputed underpayment shall be paid or statements shall be furnished, not later than the due date for the return for the adjustment year of the audited partnership.
(C) *Partnership payment of tax if elected out of subchapter* — In the case of a partnership which has elected the application of section 6221(b) with respect to the taxable year of the partnership which includes the end of the reviewed year of the audited partnership, this paragraph shall apply notwithstanding such election.
(D) *Audited partnership* — For purposes of this paragraph, the term “audited partnership” means, with respect to any partner described in subparagraph (A), the partnership in the chain of ownership originally electing the application of this section.
(E) *Treatment of trusts* — The Secretary shall prescribe such rules as may be necessary with respect to trusts which receive a statement under subsection (a)(2).
**(c) Penalties and interest**
(1) **Penalties** — Notwithstanding subsections (a) and (b), any penalties, additions to tax, or additional amount shall be determined as provided under section 6221 and the partners of the partnership for the reviewed year shall be liable for any such penalty, addition to tax, or additional amount.
(2) **Interest** — In the case of an imputed underpayment with respect to which the application of this section is elected, or which is described in subsection (b)(4)(A)(ii)(I), interest shall be determined—
(A) at the partner level,
(B) from the due date of the return for the taxable year to which the increase is attributable (determined by taking into account any increases attributable to a change in tax attributes for a taxable year under subsection (b)(2)), and
(C) at the underpayment rate under section 6621(a)(2), determined by substituting “5 percentage points” for “3 percentage points” in subparagraph (B) thereof.
**(d) Judicial review** For the time period within which a partnership may file a petition for a readjustment, see section 6234(a).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Any adjustment to a partnership-related item shall be determined, and any tax attributable thereto shall be assessed and collected, and the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to any such item shall be determined, at the partnership level, except to the extent otherwise provided in this subchapter.
**(b) Election out for certain partnerships with 100 or fewer partners, etc.**
(1) **In general** — This subchapter shall not apply with respect to any partnership for any taxable year if—
(A) the partnership elects the application of this subsection for such taxable year,
(B) for such taxable year the partnership is required to furnish 100 or fewer statements under section 6031(b) with respect to its partners,
(C) each of the partners of such partnership is an individual, a C corporation, any foreign entity that would be treated as a C corporation were it domestic, an S corporation, or an estate of a deceased partner,
(D) the election—
(i) is made with a timely filed return for such taxable year, and
(ii) includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each partner of such partnership, and
(E) the partnership notifies each such partner of such election in the manner prescribed by the Secretary.
(2) **Special rules relating to certain partners**
(A) *S corporation partners* — In the case of a partner that is an S corporation—
(i) the partnership shall only be treated as meeting the requirements of paragraph (1)(C) with respect to such partner if such partnership includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each person with
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** Every partnership (as defined in section 761(a)) shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, and such other information, for the purpose of carrying out the provisions of subtitle A as the Secretary may by forms and regulations prescribe, and shall include in the return the names and addresses of the individuals who would be entitled to share in the taxable income if distributed and the amount of the distributive share of each individual.
**(b) Copies to partners** Each partnership required to file a return under subsection (a) for any partnership taxable year shall (on or before the day on which the return for such taxable year was required to be filed) furnish to each person who is a partner or who holds an interest in such partnership as a nominee for another person at any time during such taxable year a copy of such information required to be shown on such return as may be required by regulations. Information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection (a) to which such information relates, except—
(1) in the case of a partnership which has elected the application of section 6221(b) for the taxable year,
(2) as provided in the procedures under section 6225(c),
(3) with respect to statements under section 6226, or
(4) as otherwise provided by the Secretary.
**(c) Nominee reporting** Any person who holds an interest in a partnership as a nominee for another person—
(1) shall furnish to the partnership, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for such taxable year as the Secretary may by f
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The district courts shall have original jurisdiction, concurrent with the United States Court of Federal Claims, of:
(1) Any civil action against the United States for the recovery of any internal-revenue tax alleged to have been erroneously or illegally assessed or collected, or any penalty claimed to have been collected without authority or any sum alleged to have been excessive or in any manner wrongfully collected under the internal-revenue laws;
(2) Any other civil action or claim against the United States, not exceeding $10,000 in amount, founded either upon the Constitution, or any Act of Congress, or any regulation of an executive department, or upon any express or implied contract with the United States, or for liquidated or unliquidated damages in cases not sounding in tort, except that the district courts shall not have jurisdiction of any civil action or claim against the United States founded upon any express or implied contract with the United States or for liquidated or unliquidated damages in cases not sounding in tort which are subject to sections 7104(b)(1) and 7107(a)(1) of title 41. For the purpose of this paragraph, an express or implied contract with the Army and Air Force Exchange Service, Navy Exchanges, Marine Corps Exchanges, Coast Guard Exchanges, or Exchange Councils of the National Aeronautics and Space Administration shall be considered an express or implied contract with the United States.
**(b)**
(1) Subject to the provisions of chapter 171 of this title, the district courts, together with the United States District Court for the District of the Canal Zone and the District Court of the Virgin Islands, shall have exclusive jurisdiction of civil actions on claims against the United States, for money damages, accruing on and afte
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Federal law — U.S. Code and appendices · legal_authorities
The Court of Federal Claims shall have jurisdiction to hear and to render judgment upon any petition under section 6226 or 6228(a) of the Internal Revenue Code of 1986.
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Federal law — U.S. Code and appendices · legal_authorities
Page 3539
TITLE 26—INTERNAL REVENUE CODE
§ 6226
of pars. (1) and (2) relating to determination of imputed
underpayments in general and adjustments to distribu-
tive shares of partners not netted, respectively.
Subsec. (c)(2). Pub. L. 115–141, § 203(a), amended par.
(2) generally. Prior to amendment, par. (2) related to
amended returns of partners.
Subsec. (c)(2)(F). Pub. L. 115–141, § 206(b), added sub-
par. (F) relating to adjustments not treated as amended
return.
Subsec. (c)(3). Pub. L. 115–141, § 202(b)(1), substituted
‘‘without regard to the portion of the adjustment’’ for
‘‘without regard to the portion thereof’’.
Subsec. (c)(4)(A). Pub. L. 115–141, § 202(b)(2), sub-
stituted ‘‘with respect to any portion of the adjust-
ment’’ for ‘‘with respect to any portion of the imputed
underpayment’’ in introductory provisions.
Subsec. (c)(5)(A)(i). Pub. L. 115–141, § 202(b)(3), sub-
stituted ‘‘without regard to the portion of the adjust-
ment’’ for ‘‘without regard to the portion thereof’’.
Subsec. (c)(7). Pub. L. 115–141, § 206(p)(1), substituted
‘‘filed or submitted under this subsection’’ for ‘‘sub-
mitted pursuant to paragraph (1)’’.
Subsec. (c)(9). Pub. L. 115–141, § 202(c)(2), added par.
(9).
2015—Subsec. (c)(4)(A)(i). Pub. L. 114–113, § 411(a)(1),
struck out ‘‘in the case of ordinary income,’’ before ‘‘is
a C corporation’’.
Subsec. (c)(5) to (8). Pub. L. 114–113, § 411(a)(2), added
par. (5) and redesignated former pars. (5) to (7) as (6) to
(8), respectively.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115–141 effective as if included
in section 1101 of Pub. L. 114–74, see section 207 of Pub.
L. 115–141, set out as a note under section 6031 of this
title.
EFFECTIVE DATE OF 2015 AMENDMENT
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 6226
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